The Parliamentary Standing Committee on Commerce recommended that the government increase the duration and reach of the current Production Linked Incentive (PLI) program to include other sectors and enhance its efficacy by lowering “administrative delays” and “compliance burdens.”
The committee believes that by lengthening the PLI’s lifespan, cutting down on administrative red tape, and lowering compliance requirements, its efficacy might be further increased. According to the panel report, the committee suggests broadening the PLI scheme’s scope to encompass more industries with significant employment potential, including the chemicals sector and labour-intensive businesses like leather, clothing, toys, jewellery, and handicrafts.
The committee emphasised the need for government focus on capacity development in the man-made fibre (MMF) segment of value-added clothing.
According to the report, the government needs to work with Export Promotion Councils and other interested parties to address requests for modifications to the PLI program, like lowering the value-addition requirements and incorporating more high-potential MMF clothing items.
